New Jersey § 40a:21-5

§ 40a:21-5.

a. If the ordinance adopted pursuant to this act shall provide for the exemption from

taxation of improvements to dwellings, it shall require that, in determining the value

of real property, the municipality shall regard the first $5,000 or $15,000 or $25,000,

as the ordinance shall specify, in assessor's full and true value of improvements

for each dwelling unit primarily and directly affected by the improvement in any dwelling

more than 20 years old, as not increasing the value of the property for a period of

five years, notwithstanding that the value of the property to which the improvements

are made is increased thereby. During the exemption period, the assessment on the property shall not be less than

the assessment thereon existing immediately prior to the improvements, unless an abatement

is granted pursuant to subsection b. of this section, or there is damage to the dwelling

through action of the elements sufficient to warrant a reduction. b. An ordinance providing for exemptions for improvements to dwellings may also provide

for the abatement of some portion of the assessed value of property receiving the

exemption as it existed immediately prior to the improvement. An abatement for a dwelling may be granted with respect to that property for a total

of up to five years, but the annual amount of the abatement granted to any single

property shall not exceed 30% of the annual amount of the exemption granted under

the ordinance. The abatement period and the annual percentage of the abatement to be granted shall

be set forth in the ordinance, which may include a schedule providing for a different

percentage of abatement, up to 30%, for each year of the abatement period. c. An ordinance providing for exemptions or abatements, or both, for improvements

to dwellings may also provide for the exemption of some portion of the assessed valuation

of construction of new dwellings or of conversions of other buildings and structures,

including unutilized public buildings, to dwelling use, or both. If so, the ordinance shall require that, in determining the value of real property,

the municipality shall regard a percentage, not to exceed 30%, of the assessor's full

and true value of the dwelling constructed, or conversion alterations made, as not

increasing the value of the property for a total up to five years, notwithstanding

that the value of the property upon which the construction or conversion occurs is

increased thereby. The exemption period and the annual percentage of the exemption to be granted shall

be set forth in the ordinance, which may include a schedule providing for a different

percentage of exemption, up to 30%, for each year of the exemption period. d. An ordinance providing for the exemption of some portion of the assessed valuation

of construction of new dwellings, or of conversions of other buildings and structures

to dwelling use, or both, may also provide for the abatement of some portion of the

assessed value of the property receiving the exemption as it existed immediately prior

to the construction or conversion alteration. An abatement for a dwelling may be granted for a total of up to five years, but

the annual amount of the abatement shall not exceed 30% of the total cost of the construction

or conversion alteration, and the total amount of abatements granted to any single

property shall not exceed the total cost of the construction or conversion alteration. The abatement period and the annual percentage of the abatement to be granted shall

be set forth in the ordinance, which may include a schedule providing for a different

percentage of abatement, up to 30%, for each year of the abatement period.